Author Archives: Charles Hugh Smith

The Feedback Loop of Doom: When Mobile Creatives and Capital Abandon Unaffordable, Dysfunctional Cities

At the end of any trend, everyone’s a true believer: this trend is so enduring, so broad-based, so based on unchanging fundamentals that it will never ever reverse. One such trend is the white-hot growth of housing, employment, tax revenues, etc. … Continue reading

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If “Getting Ahead” Depends on Asset Bubbles, It’s Not “Getting Ahead,” It’s Gambling

Beneath the endlessly hyped expansion in gross domestic product (GDP) of the past two decades, the economy has changed dramatically. The American Dream boils down to social and economic mobility, a.k.a. getting ahead through hard work, merit and wise investments in oneself and … Continue reading

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America’s Forced Financial Flight: Fleeing Unaffordable and Dysfunctional Cities

For hundreds of years, rural poverty has driven people to urban areas: cities offer paying work and abundant opportunities to get ahead, and these financial incentives have transformed the human populace from largely rural to largely urban in the developed world. … Continue reading

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The Next Financial Crisis Won’t Be Caused by Fraud: This Time Will Be Different

Financial crises come in two flavors: fraud and credit-valuation over-reach.Fraud-based financial crises may differ in particulars, but they share many traits: perverse incentives are institutionalized; the perverse incentives reward figuring out how to evade oversight via fraud, embezzlement, masking risk, … Continue reading

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The World’s Hypocritical Silence as China Imprisons its Ethnic Muslims En Masse

Imagine the reaction in the global Muslim community if a western nation imprisoned hundreds of thousands of Muslims solely for being Muslim and subjected them to torture, “re-education” that amounts to treating their religious faith as a pathological mental illness, forcefully … Continue reading

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